Ulster County Industrial Development Agency nears decisions on tax breaks for two businesses that failed to meet job goals

The Ulster County Industrial Development Agency is expected to decide next month whether to take action against two businesses, including one co-owned by the county Legislature chairwoman, for failing to live up to their job promises.

Agency Chairman David O'Halloran said he has been negotiating with Skate Time 209 in Accord and Hudson Valley Sports Dome in Milton for a voluntary reduction in the payment-in-lieu-of-taxes, or PILOT, benefits they receive regarding their property taxes.

O'Halloran said he hopes to have a deal in place with the Sports Dome by the March 13 meeting of the agency's board of directors.

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He was less optimistic about reaching a deal with Skate Time, which is owned by county Legislature Chairwoman Terry Bernardo and her husband, Len.

"I have not made any significant progress in negotiating with them to reach a voluntary agreement," O'Halloran said. "They have a principled disagreement with what we're doing and whether we have a legal right to do it."

In October, the Industrial Development Agency's board adopted a policy allowing the agency to ask businesses that have not met initial job projections to voluntarily agree to a reduction in the level of tax breaks by a percentage equal to half the percentage shortfall in job creation.

On their application for tax breaks, the Bernardos said they would create 20 full-time jobs, but in 2011, they reported only nine full- and part-time jobs, a 55 percent shortfall in job creation. Under the proposed policy, tax breaks given to the business would be reduced by 27.5 percent. However, because the business has created other benefits to the community, the reduction was cut in half, to 14 percent.

Len Bernardo has maintained that job creation was not a criteria for receiving the tax breaks.

O'Halloran said agency board members have indicated they intend to make a decision on the Skate Time property and other "underperforming" businesses at their March 13 meeting.

Under the agency's policy, board members could revoke the PILOT deals for companies unwilling to agree to a voluntary reduction. The revocation of a PILOT would mean those businesses would be required to pay full taxes on their properties.